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Since the turn of the century, aid flows to Africa have increased on average and become more volatile. As a result …
Persistent link: https://www.econbiz.de/10014400327
Post debt relief, the number of African countries considering accessing international capital markets, often to fund large infrastructure projects, is increasing. Potential risks of capital inflows are well known but the literature offers little help to estimate the cost of borrowing...
Persistent link: https://www.econbiz.de/10014402862
We develop a model to analyze the macroeconomic effects of a scaling-up of aid and assess the implications of different policy responses. The model features key structural characteristics of low-income countries, including varying degrees of public investment efficiency and a learning-by-doing...
Persistent link: https://www.econbiz.de/10014402924
What role does China play in Africa''s development? What drives China''s increasing economic involvement in the … government policies, markets for each other''s exports, Africa''s demand for infrastructure, and differences in China''s approach … to financing have together moved commercial activities-trade and investment-to the center of China-Africa economic …
Persistent link: https://www.econbiz.de/10014400123
This paper surveys the economic literature on the scaling-up of aid to Africa. It provides a checklist of issues that …
Persistent link: https://www.econbiz.de/10014404188
We study the role of the exchange rate regime, reserve accumulation, and sterilization policies in the macroeconomics of aid surges. Absent sterilization, a peg allows for almost full aid absorption — an increase in the current account deficit net of aid—delivering the same effects as those...
Persistent link: https://www.econbiz.de/10014394328
Persistent link: https://www.econbiz.de/10009572438
Persistent link: https://www.econbiz.de/10009620973
This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient even without fixed costs, and the inefficiency increases in the equality of donors'...
Persistent link: https://www.econbiz.de/10009621658